What if too many Financial Institutions Fail, can FSCS Keep its Promised 90% Protection? Print E-mail

 After UK FSCS (Financial Services Compensation Scheme) confirms that Foreigners who invested in UK Traded Endowment enjoy the 90% Protection offered by FSCS, I sent FSCS another email asking them the following:

in the event if there might be too many financial institutions getting into trouble and if FSCS runs out of funding, what will happen?
Would that mean that the FSCS might not be in a financial position to deliver their promised protection?
And FSCS replied my email within the same day (today):
Dear Mr Ng
Thank you for your further email.
Details of the limits that FSCS can levy in a financial year are set out on our website at
It is extremely unlikely that two or three banks or insurers will become insolvent simultaneously. No bank has been declared “in default” since the inception of the FSCS. 
However, were this to happen, additional funds would be made available to the FSCS, potentially from the government or the Bank of England.


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